Duet invests in a various commodities with particular focus on energy, metals and foreign exchange. The new fund’s investment strategy, which couples fundamental analysis with technical market indicators, relies on the ability to adapt quickly to changing market conditions through dynamic hedging in liquid derivatives.
The commodity traders of the Duet will use Imagine software for real-time analysis of differences in the behavior of sectors. Adopting user-customizable risk calculations, they monitor and compare exposures to Greeks and associated impacts on P&L.
From an internal management perspective, the ability to modify risk calculations and portfolio views on the fly allows Duet’s management team the flexibility to measure exposure and P&L between sectors, portfolios and traders, which helps the firm with an insight and transparency to make informed investment decisions.
In addition, the fund has established risk parameters that signal when a trade is stopped out or hits its target, and Duet can inform investors about best- and worst-case scenarios at any point during the day.
Duet Commodities Fund chief investment officer Tony Hall said that Imagine delivers robust risk management capabilities via cloud technology.
"I can even perform shocks to show them what would happen if the market were to move in one direction or another. As the fund expands, all new traders will have an Imagine screen in front of them," Hall said.
Hall also noted that Imagine provides Duet with a stable, reliable and secure environment with the scalability needed to manage additional asset classes as the company grows another key factor in Duet’s decision to implement Imagine.
Yvonne Dahl, global director of sales and marketing at Imagine, said that the Duet will benefit from Imagine’s 18-year track record as a pioneer and leading provider of risk management solutions.
